Jack Signs an Instrument That States It Is Being Executed

question 24

Multiple Choice

Jack signs an instrument that states it is being executed "as per a contract for the sale of three magic beans dated June 1." This instru?ment is

• A)negotiable.
• B)nonnegotiable,because banks cannot easily process commodities.
• C)nonnegotiable,because it includes the specific date of a contract.
• D)nonnegotiable,because it refers to an express contract.

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Definitions:

Cost Formula

An equation or method used to predict the cost associated with a certain level of activity or production volume.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, highlighting how much contribution towards fixed costs and profit is made per unit sold.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and sales commissions.

Gross Margin

Gross margin is a company's net sales revenue minus its cost of goods sold, representing the efficiency with which it can produce and sell its products for a profit.